Good Cash Flow

[dvduval]

One thing I have learned, sometimes the hard way, is the importance of having cash flow so that I am getting paid at regular intervals throughout the month. I prefer not to get all the money at once, but instead I try to make it so customers pay at different times. This has really made managing my money a lot easier. What are you doing to keep a healthy cash flow?

[chromate]

Actually, I personally quite like getting paid all in one go at the end of the month. Stops me spending too much :) I find it easier to plan that way. I can see exactly how much I have left for the entire month.

I save all my cheques and pay them all in in one go. Less bank charges that way too. I seem to have at least 6 cheques a month to pay in now, all in $USD.

[Chris]

I don't have clients...

But I'd prefer to get my checks all at once if I could, saves me trips to the bank.

I don't rely on monthly cash flow to pay the bills, I keep a sizeable operating balance in my business accounts for that. So for me its all about convenience.

[Todd W]

I don't have clients...

But I'd prefer to get my checks all at once if I could, saves me trips to the bank.

I don't rely on monthly cash flow to pay the bills, I keep a sizeable operating balance in my business accounts for that. So for me its all about convenience.

I agree. I hate going to the bank multiple times a month, and only go when it's convenient so checks sometimes stack up.

[dvduval]

Interesting comments....I see where you are coming from.
I personally like to have multiple streams rather than one big check because what happens if there is a problem getting that check? I also have money in my business account, but I don't earn too much with the money sitting so I prefer to have a balance of cash flow coming in that offsets my expenses going out, and this is what I call good cash flow. :)

[AndyH]

Yeah one trip to the bank is best.

Wait times are normally pretty long and because they are international cheques it takes a bit longer also.

[ozgression]

I personally like to have multiple streams rather than one big check because what happens if there is a problem getting that check?

I don't think anyone said they want one big cheque, they just cash (eg. get the money into their accounts) multiple checks at the same time of the month.

I also prefer this. Saves time and effort. Also, as chromate said, it allows me to plan for the upcoming month better.

[Cutter]

You should always be putting away extra money rather than spending it. I'm not saying save every single penny and only shop at thrift stores. What you should do is set some financial goals for yourself. Most of us here are pretty young; if you plan right you could be looking at retiring somewhere between 30 or 40 years old.

I like what I do, I'm not planning on retiring by then, but I am planning on being financially independent (as in, if all the checks stopped coming, I'm not sweating.)

If you are putting money away, then you rarely need to worry about cashflow.

Besides living expenses, most of my money goes right back into my businesses. I've already diversified too, and at least one of those things is bringing me in just as much money as my advertising revenue.

[dvduval]

Yes, I certainly agree with the idea of money going directly into my account rather than having to take checks to the bank all the time.

With regard to getting a lot of money at one time, and then letting it sit in an account all month, I'm sure I like this idea either. I prefer to move this sort of money into an invetment with a higher yield than a checking/money market account. This is why I like the continuous flow where my money coming is slightly more than the money going out in my primary business account, and then as excess accumulates, I then move the it to a higher yield investment. At least, that is the ideal situation in my opinion. :)

[yellowbell]

dvduval, i guess you're one of the luckiest person i know imagine having lots of money to manage :D


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